The indictment that charged Posada with lying to investigators about his entry into the United States in 2005 was thrown out last year by a federal judge in El Paso, Texas. U.S. District Judge Kathleen Cardone accused prosecutors of "fraud, deceit and trickery."
An appeals panel in Miami reversed Cardone Thursday, the Miami Herald reported. Posada's lawyer, Arturo Hernandez, said he would ask for a hearing by the full court and appeal to the U.S. Supreme Court if he loses in New Orleans.
Posada, 80, who had been living in Honduras before he appeared in Miami in 2005, is wanted by both Cuba and Venezuela for the 1976 bombing of a Cuban plane. He is also named as a suspect in 1997 bombings in Cuba.